CONNECT WITH US
Aug 21, 12:29
Volkswagen deepens China bet with Xpeng in global E/E Race
European and Japanese automakers are increasingly turning to Chinese carmakers to navigate the accelerating transformation of vehicle electronics and electrification in the world's largest auto market. With software-defined vehicles gaining momentum, electronics and electrification architectures are no longer exclusive to battery electric vehicles, but now extend to plug-in hybrids and even internal combustion engine cars. China, once a follower in the global auto industry, is now reshaping its rules.
Yulon Finance, a car finance firm of the Yulon Group, held its online earnings call for the second quarter of 2025 on August 20. The company summarized its second-quarter 2025 operating results around three main pillars: risk control optimization, performance stabilization, and new business expansion. Through proactive strategic adjustments, these core areas have not only generated stable revenue but also laid a solid foundation for future growth.

Facing a challenging economic environment, Taiwan's new car market saw softened demand in the first half of 2025, particularly among electric vehicles (EVs). In response, Local brand Yulon Motor reaffirmed its commitment to deepening its collaboration with Foxtron Vehicle Technologies, targeting both domestic demand and international markets. At the center of its strategy is the expansion of its Luxgen N7 EV offering.

As global automakers battle for dominance in an increasingly competitive Chinese market, European luxury brands are facing unprecedented headwinds. Beyond losing market share to fast-rising Chinese manufacturers, a newly implemented luxury tax policy by Beijing is compounding their struggles—threatening what many had viewed as their final stronghold in the world's largest auto market.
The US Department of Commerce on August 20, 2025, announced the inclusion of 407 additional product categories under Section 232 tariffs, marking the latest effort to bolster domestic steel and aluminum industries. The move subjects the steel and aluminum content of these products to a 50% duty rate.
Taiwan's automotive parts industry is facing its toughest challenge in years, as domestic car demand has stalled since April 2025. The sales freeze has rippled through the supply chain, leaving suppliers struggling with fewer working days, relentless price competition, and lingering uncertainty over auto tariffs.

As industrial automation and robotics evolve at breakneck speed, major global automakers and Tier 1 suppliers are swiftly transforming their production lines into testing grounds for cutting-edge AI and humanoid robots.

Xiaomi's electric vehicle business delivered strong performance in the second quarter of 2025, reflecting the company's strategic focus on premiumization and operational efficiency.
On August 14, 2025, VinFast Auto announced a restructuring plan that will spin off certain research and development assets into a newly formed entity and subsequently transfer ownership to founder and CEO Pham Nhat Vuong. The move underscores the founder's role in supporting the company's long-term growth strategy as VinFast continues to refine its capital and operational structure.
Xiaomi delivered a strong performance in the second quarter of 2025, underscoring its rapid transformation into a more diversified technology company. Growth in its EV, AI, and new initiatives businesses helped the company offset continued weakness in its core smartphone segment. The results highlight Xiaomi's shift away from reliance on handsets, with emerging businesses beginning to play a more central role in driving profitability and investor confidence.

Despite lively public debate over vehicle pricing, Taiwan's electric vehicle (EV) market has entered a period of stagnation, as long-awaited tariff agreements with the United States remain unresolved and consumer demand continues to lag. With the lunar ghost month and a traditional seasonal slowdown approaching, automakers and dealers are rushing to stimulate demand through aggressive promotions and equipment upgrades.

Dongfeng Motor Corporation, one of China's largest state-owned automakers, is divesting its 50% stake in Dongfeng Honda Engine Co., a joint venture with Japan's Honda Motor Co., in a move that signals a decisive pivot away from internal combustion engines and toward electric mobility.